Pure Economic Loss

Question 1

Hedley Bryne v Heller

Answer 1

Outlined 5 part test for Pure Economic Loss

Question 2

Chaudrhy v Prabhakar

Answer 2

Skill/ Expertise
Reasonable Reliance
“Defendant must have expertise in relevant area or have information available to them”

Question 3

Lennon v MPC

Answer 3

Skill/ Expertise

Failed as gave wrong expertise to claimant

Question 4

Patchett v SPATA

Answer 4

Voluntarily assumes responsibility

Is not liable for negligent misstatement if not clear that they did not intend to assume responsibility

Question 5

Caparo v Dickman

Answer 5

Known User
Known Purpose
“Only liable if they were aware of the person or class of people”
“Not wear of the purpose of the information”

Question 6

Morgan Crucible v Hill

Answer 6

Known User

Knew about user and gave wrong information

Question 7

Law society v KPMG

Answer 7

Known Purpose
“Known or should be aware on what the information would be used for”
They were aware but chose to ignore it

Question 8

Smith v Eric S Bush

Answer 8

Reasonable Reliance

“Must demonstrate it was reasonable to rely on the information at the given time”

Question 9

Spartan Steel

Answer 9

Can only claim for economic loss if it has a physical loss aswell

Question 9

Barnett v Chelsea

Answer 9

Causation: But for test

Question 10

Wagon Mound

Answer 10

Causation: Remoteness of damage

Question 11

Blyth v BHam Waterworks

Answer 11

Breach: falling below standards of a reasonable man